Final Answer:
If the company extends credit to 1,384 customers, the total Accounts Receivable (A/R) will depend on the credit amounts issued to each customer and their payment terms.
Step-by-step explanation:
The total Accounts Receivable (A/R) of a company reflects the amounts owed by customers for goods or services provided on credit. In this scenario, while the number of customers is known (1,384), the specific credit amount and terms for each customer are crucial in determining the total A/R.
A company's A/R is a result of the credit sales it has made. If the credit terms vary for each customer, considering factors such as credit limits, payment periods, and outstanding balances, the total A/R calculation requires these specific details.
For instance, if Customer A has a credit limit of $500 and Customer B has a credit limit of $1,000, the total A/R will be the sum of the credit limits extended to all customers. Calculating the total A/R involves accounting for individual credit amounts and terms, including any outstanding payments or balances due from previous credit transactions.
It's important to note that the total A/R changes dynamically based on the sales made on credit, payments received, and new credit issued. Therefore, to determine the precise total A/R for the company extending credit to 1,384 customers, the specific credit details for each customer need to be considered rather than just the customer count.